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To: Boca_PETE who wrote (5302)	5/31/1998 9:24:00 PM
From: kahunabear	Respond to of 42834

Pete, Re: "It's understandable that people not schooled in accounting could form false conclusions and expectations about the multitude of financial information disclosed in annual reports and SEC reports issued by companies. I guess that's why one needs to rely upon a good objective analyst at times." I agree, that is one point I have been trying to make. I think it applies to the Income Statement as well as the Balance Sheet and the incorrect conclusions can be positive or negative. Thanks, WS

To: Boca_PETE who wrote (5302)	5/31/1998 10:21:00 PM
From: kahunabear	Read Replies (1) \| Respond to of 42834

Pete, BTW, when I asked the question: If accounting principles do what they are supposed to do, shouldn't book value be a reflection of the value of underlying net assets ? I was trying to get your feeling on whether book value SHOULD be some reflection of the value of net assets(assets minus liabilities). I agree that it may not. I think this relates to our earlier discussions about how an income statement SHOULD accurately reflect a company's profit. I think in some cases it may not. In other words, if a balance sheet is not always a good representation of assets and liabilities, then perhaps the income statment is not always an accurate representation of earnings. It probably makes more sense to discuss specifics like stock options and special charges. Perhaps I have exhausted the subject. Anyway, it has been interesting hearing your perspective. Thanks, WS